California FAIR Plan (2026): Coverage, Cost, Limits, and How to Get Off It
The California FAIR Plan is the state's insurer of last resort: basic fire coverage for homeowners who cannot buy a policy in the private market. It is a pool funded by all admitted insurers, not a government program. As of June 2026 it held 696,562 policies, and effective January 1, 2026 its residential dwelling cap rose to $3 million. People end up on it after a non-renewal in a fire hazard area.
Reviewed by Shawn Gardner and Walt Mullins
Co-founders of FireRoofs with over 50 years of combined experience in construction, irrigation, and wildfire defense across the San Francisco Bay Area. All work is performed by licensed and insured contractors. Learn more about us
Last updated: August 18, 2026
All work is performed by licensed and insured contractors.
The FAIR Plan Covers Fire. Almost Nothing Else.
A standard FAIR Plan policy is a named-peril fire policy. It pays for fire, lightning, smoke and internal explosion. It does not include liability, theft, water damage or the other perils in a normal homeowner policy (California Department of Insurance). Because of that, almost every FAIR Plan household also buys a separate Difference in Conditions (DIC) policy from a private carrier that wraps around the FAIR Plan and fills those gaps.
The $3 Million Cap and What It Misses
Effective January 1, 2026 the FAIR Plan raised its maximum residential dwelling limit to $3 million, up from the prior $1.5 million. For a separate high-value commercial program the limits are higher, but for homes the residential cap is $3 million.
In much of the Bay Area wildland-urban interface, rebuild costs run well above that cap, so a total loss can leave a homeowner underinsured even with a full FAIR Plan limit. Owners above the cap typically layer excess coverage through surplus-lines carriers.
The cap is a coverage limit, not a valuation of your home. If your rebuild cost exceeds $3 million, budget for excess coverage on top of the FAIR Plan and confirm the number with a licensed broker.
Rising Rates, Plus a Mitigation Discount
FAIR Plan rates are risk based and have climbed sharply. The Department of Insurance approved a 29.1% average statewide rate increase effective October 15, 2026, with larger increases weighted toward the highest-risk areas. Add a DIC policy for liability and other perils and the combined annual cost is higher still.
The FAIR Plan does offer a wildfire hardening discount under its Safer from Wildfires program, up to 16.4% for dwelling-fire policies (and up to 13.8% for commercial), applied to the wildfire portion of the premium for policies effective on or after November 15, 2025. You document the qualifying measures and your broker submits them for approval. See our Bay Area mitigation cost guide for real pricing.
Just Got a Non-Renewal Notice?
Non-renewals in fire hazard areas are portfolio decisions, not a judgment on your claims history. Here is what to do first.
Check the notice and the dates
California requires at least 75 days written notice before a non-renewal, with the specific reason stated. If proper notice was not given, your policy stays in force at the same terms for 75 days from the notice date. Source: California Department of Insurance.
Know your moratorium protection
Under Senate Bill 824, if the Governor declares a wildfire emergency, insurers cannot non-renew or cancel policies in the affected ZIP codes for one year. Confirm whether your address falls inside a current moratorium before you accept any replacement policy.
Have a broker shop the admitted market first
You cannot apply to the FAIR Plan directly. A licensed broker must first try the private (admitted) market. Ask the broker to document declinations, because that paper trail is what qualifies you for the FAIR Plan and later helps you return to a private carrier.
Document your mitigation, then file a complaint if needed
Photograph and date every hardening measure so your broker can submit it for discounts. If you believe the non-renewal was improper or the notice rules were not followed, file a complaint with the California Department of Insurance.
The Safer from Wildfires Measures Carriers Recognize
California's Safer from Wildfires framework, built by the Department of Insurance with state fire agencies, groups mitigation into three layers. Admitted insurers must recognize these documented measures when they set rates, which is the paper trail that helps a homeowner move from the FAIR Plan back to a private carrier. Keep dated photos and receipts for each item.
- Class A fire-rated roof
- Ember- and fire-resistant vents (1/16 to 1/8 inch noncombustible metal mesh)
- Multi-pane windows or shutters
- Enclosed eaves with noncombustible soffits
- Six vertical inches of noncombustible material at the base of exterior walls
- A 5-foot ember-resistant zone (no combustible mulch, plants or attached wood fencing)
- Defensible space that meets state and local law
- Cleared vegetation and debris under decks
- Combustible sheds and outbuildings moved at least 30 feet away
- Property in a recognized Firewise USA site, or
- Property in a Fire Risk Reduction Community certified by the Board of Forestry
How FireRoofs Helps
FireRoofs designs and coordinates your exterior sprinkler system and home hardening scope, then delivers an underwriter-ready documentation package for the measures you complete. One point of contact, one project, with all work performed by vetted, licensed and insured partner contractors. See the insurance discount guide.
A Backstop That Became the Market
The FAIR Plan was built for a few high-risk properties. It is now the fastest-growing home insurer in the state. Data as of June 2026.
| As of | Policies | Measure |
|---|---|---|
| September 2021 | 242,440 | Residential policies |
| Fall 2024 | 464,900 | Total policies in force |
| September 2025 | 642,010 | Residential policies |
| December 2025 | 668,600 | Total policies in force |
| June 2026 | 696,562 | Total policies in force |
Growth is concentrated in high-wildfire-risk counties. In 2023 the Department of Insurance recorded 788,485 non-renewals statewide, and in 46 of California's 58 counties non-renewals outnumbered new policies. Los Angeles, San Bernardino, San Diego and Riverside counties together hold over half of all FAIR Plan policies, and in the ten highest-exposure counties roughly one in three residential policies is now on the FAIR Plan.
Sources: California FAIR Plan key statistics; California Department of Insurance data analysis on wildfires and insurance. Table updated quarterly.
See which next step fits your home
Enter your city. Homes inside our Bay Area service area can book a free on-site evaluation. Everywhere else in California, start with the $149 wildfire assessment report or the free risk check.
Common Questions
What is the California FAIR Plan?
The FAIR Plan is California's insurer of last resort, providing basic fire coverage to homeowners who cannot buy a policy in the private market. It is a shared risk pool funded by all admitted insurers in the state, not a government program.
What does the FAIR Plan cover?
A standard FAIR Plan policy covers fire, lightning, smoke and internal explosion. It excludes liability, theft, water damage and other perils, so most policyholders add a separate Difference in Conditions (DIC) policy from a private carrier to fill the gaps.
What is the maximum FAIR Plan coverage in 2026?
Effective January 1, 2026 the maximum residential dwelling limit is $3 million, up from $1.5 million. A separate commercial high-value program carries higher limits. Source: California FAIR Plan.
How much does the FAIR Plan cost?
Rates are risk based and rising. The Department of Insurance approved a 29.1% average statewide increase effective October 15, 2026, with larger increases in the highest-risk areas. Adding a DIC policy raises the combined annual cost further.
Does the FAIR Plan offer a mitigation discount?
Yes. Under Safer from Wildfires, the FAIR Plan offers up to a 16.4% discount for dwelling-fire policies (up to 13.8% commercial) on the wildfire portion of the premium, for policies effective on or after November 15, 2025, when qualifying hardening measures are documented and approved.
How many homes are on the FAIR Plan?
As of June 2026 the FAIR Plan reported 696,562 policies in force with about $768 billion of exposure, up from roughly 465,000 policies in fall 2024. Source: California FAIR Plan key statistics.
Why was my policy non-renewed?
Non-renewals in fire hazard areas are usually portfolio-level decisions driven by catastrophe loss projections, not your individual claims history. In 2023 non-renewals outnumbered new policies in 46 of 58 California counties.
How much notice must an insurer give before non-renewal?
California requires at least 75 days written notice with the specific reason stated. If proper notice is not given, the policy remains in force at the same terms for 75 days from the notice date. Source: California Department of Insurance.
How do I get off the FAIR Plan and back to a private carrier?
Document the Safer from Wildfires measures you complete, then have a broker who works fire-zone properties submit that evidence with private-market applications. Admitted insurers must consider documented mitigation when they set rates.
Do I need a DIC policy with the FAIR Plan?
In almost all cases, yes. Because the FAIR Plan only covers fire and a few related perils, a Difference in Conditions policy is standard to restore liability, theft and water-damage coverage. Skipping it leaves major exposures uninsured.
Free: Non-Renewed in California, the First 30 Days Checklist
A step-by-step checklist for the month after a non-renewal notice: the dates to verify, the documents to gather, the discounts to claim, and how to file a complaint if the notice was improper.
Sources
- California FAIR Plan, Key Statistics and Data (policy counts, exposure, dwelling cap).
- California Department of Insurance, California FAIR Plan (rate change, mitigation discount, coverage scope).
- California Department of Insurance, Safer from Wildfires (mitigation measures).
- California Department of Insurance, Data Analysis on Wildfires and Insurance (non-renewals, county concentration).